When couples in Massachusetts decide to divorce, they need to take steps to protect their finances. Divorces can wreak havoc on the finances and credit of divorcing spouses. It may be a good idea for people who want to divorce to meet with a financial advisor and a family law attorney before filing so that they can better understand the financial impacts they might face and take steps to protect themselves.
With the help of a financial advisor, people who want to divorce should create a budget for life after divorce. They should figure out what their immediate costs will be after their divorces and plan for expenses such as moving into a new home, purchasing a different car, and paying for their daily living expenses on their own. They should also create financial management plans for their expenses, including the costs of their divorces, while their cases are pending.
Figuring out how to divide the marital assets fairly will also be important. People need to understand the potential tax implications of taking different assets and choose a strategy that will minimize their tax burdens. They will need to figure out how to divide the debts and try to repay joint debts in full during the divorce or get the debts in one spouse’s name alone.
People should consider whether it might be smarter to downsize instead of staying in their marital homes. It might make more financial sense to sell the home and divide the proceeds than for one spouse to try to take over the mortgage on his or her own. Experienced Middlesex County, Massachusetts, divorce lawyers may work closely with financial advisors to help their clients so that their credit and finances might be protected during and after divorce.